Commercial Refinance

Commercial Refinance

Refinancing refers to the replacement of an existing debt obligation with a debt obligation bearing different terms.

Refinancing may be undertaken to reduce interest costs (by refinancing at a lower rate), to extend the repayment time, to pay off other debts, to reduce one’s periodic payment obligations (sometimes by taking a longer-term loan), to reduce or alter risk (such as by refinancing from a variable-rate to a fixed-rate loan), and/or to raise cash for investment, consumption, or the payment of a dividend.

In essence, refinancing can alter the monthly payments owed on the loan either by changing the loan’s interest rate, or by altering the term to maturity of the loan. More favourable lending conditions may reduce overall borrowing costs. Refinancing is used in most cases to improve overall cash flow. Therefore making your bills/payments lower than before.

Another use of refinancing is to reduce the risk associated with an existing loan. Interest rates on adjustable-rate loans and mortgages shift up and down based on the movements of the various indices used to calculate them. By refinancing an adjustable-rate mortgage into a fixed-rate one, the risk of interest rates increasing dramatically is removed, thus ensuring a steady interest rate over time. This flexibility comes at a price as lenders typically charge a risk premium for fixed rate loans.

logo

Locations

BRE BROKER LIC# 0065444
Privacy Policy

Pacific Mortgage Exchange, Inc.

760-779-5556
73241 Hwy 111
Palm Desert, CA 92260

Disclaimer: The content of this site simply provides general information for the consumer. It should not be considered legal advice, guidance, or gurantee of an offer of a loan or financing. This site may include links or references to third-party sites, resources, or content. These parties are not endorsed by Pacific Mortgage Exchange, Inc. nor is the accuracy of their information.